Thailand Growth Headwinds Persist Despite Fiscal Package

Author: Fatma Selimoğlu

Thailand Growth Headwinds Persist Despite Fiscal Package

Thailand's economic growth headwinds still persist despite the government's recent fiscal package, UOB economists say in a note. Domestic demand remains uneven, while energy-shock risks weigh on consumer sentiment and employment.

New Co-Payment Scheme

The new co-payment scheme aims to ease the cost of living and stimulate the local economy. However, it should be seen as a targeted fiscal shock absorber rather than a classic demand-boosting stimulus.

GDP Growth Forecasts

UOB maintains Thailand's GDP growth forecast at 1.5% in 2026 and 2.4% in 2027, compared to 2.4% expansion recorded in 2025.

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